The Romanian capital market goes up by 14 percent in the first four months as market uncertainties daunt trading values

5/24/2019

The Romanian capital market went up by 14.5 percent in the first four months this year, including the dividends of the companies included in the BET index, mirroring the evolution of the most-traded 16 companies except for the Financial Investment Companies.

Analysts say lower trading values from this time of the year occurred as investors were waiting for a more clear direction to reveal itself both in international markets, as well as in the domestic market.

All the indices of the Bucharest Stock Exchange (BVB) displayed positive results at the end of the first four months this year, amid an international and domestic environment marked by uncertainties and a foggy evolution in the markets. The BET index, which includes the most-traded 16 companies except for the Financial Investment Companies, went up by 14.3 percent after the first four months, posting a closing value of over 8,440 points at the end of the last trading session from April, slightly outgrowing the level reported back in December 18th last year, before the Government made public the Emergency Ordinance 114 . A growth rate of 14.5 percent was reported by the BET-TR index, which also includes the dividends offered by the companies from the BET index. The largest increase was posted by the BET-NG index, which includes energy and utility companies, while the smallest increase was seen by the BET-FI index, which grew by some 5 percent over the same period last year.

The local market went up but it did so due to lower trading values as compared to the first four months from 2018. The investors have postponed major decisions and large trading orders were put on halt enough to pull the average daily trading values down to EUR 8.5 million. Analysts say lower trading values from this time of the year occurred as investors were waiting for a more clear direction to reveal itself both in international markets, as well as in the domestic market. The total trading volumes for all the financial instruments also shrank in the first four months and went shy above EUR 700 million.

At the end of April, the market value of the Romanian companies listed on BVB went over EUR 20.1 billion as compared to EUR 18.1 billion at the end of last year, which corresponds to an 11 percent increase. The capitalization of all the companies listed on the Main Market of BVB accounted for EUR 35.5 billion at the end of the last trading session from April, compared to EUR 30.6 billion, which is 16 percent over the level from last year.